recruitment deal

Jan

2017

Current Ameriprise Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC :

Ameriprise has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 10% and 30%. Additionally, the hurdle in order to meet back-end production goals under the deal is:

· Year 1: Hurdle – 65% of assets and revenue

Payout bonus: 10% to 30% of production

All proposed deals are negotiable and reflected in numerous agreements such as promissory note and employment agreements. Reps should retain qualified legal counsel to review those documents in advance of committing to transition to a new firm.

Jan

2017

Current Wells Fargo Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC :

Wells Fargo has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 125% and 150%. Additionally, the hurdles in order to meet back-end production goals under the deal are:

High Performance

Premier Advisor Status

Client Experience

Full best practices adoption
Envision 80% average
Advisory – 60% Advisory AUM or 80% Advisory Revenue
Lending – $6,000 lending credits (or $8,000 lending credits for 2016 retro award)

Delta Graduate

Growth

15% revenue growth or $150,000 revenue growth

Jan

2017

Current Merrill Lynch Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC

Merrill Lynch has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 150% and 170%. Additionally, the hurdles in order to meet back-end production goals under the deal are:

· Year 1: Hurdle – 75% of assets

Payout bonus: 50% of production (from same year)

· Year 2: Hurdle – 95% of assets

Payout bonus: 40% of production (from same year)

· Year 3: Hurdle – 115% of assets

Payout bonus: 30% of production (from same year)

· Year 4: Hurdle – 125% of assets

Payout bonus: 25% of production (from same year)

· Year 5: Hurdle – 155% of assets

Payout bonus: 25% of production (from same year)